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Cryptocurrencies Surge As South Korea Backs Off Crypto Ban

On Wednesday night, bitcoin and the entire crypto sector tumbled more than 10%, following reports that the Ministry of Justice in South Korea – one of the world’s most active cryptocurrency markets – said it was preparing legislation to close the country’s online exchanges amid a speculative boom in cryptocurrencies. That shot across the bow was paired with the news that tax authorities were investigating at least some of the exchanges in Korea.

In a statement, South Korea Attorney General Park Sang-ki said: “The South Korean Ministry of Justice is considering the closure of cryptocurrency trading to bring cryptocurrency mania and speculation under control for investor protection.”

However, confusion quickly erupted just hours later when following the surprise announcement, South Korea’s Ministry of Strategy and Finance, a key member of the country’s cryptocurrency task force, said that it does not agree with the “premature statement of the Ministry of Justice about a potential cryptocurrency trading ban.”

In a press conference, the South Korean Ministry of Strategy and Finance told local reporters that it had first heard of the Ministry of Justice’s cryptocurrency trading ban through media reports. The cryptocurrency task force participated by the central bank, MInistry of Finance, Ministry of Justice, and other agencies have not agreed upon the proposal.

“We do not share the same views as the Ministry of Justice on a potential cryptocurrency exchange ban,” MSF said according to the local Naver website.